June 12, 1997 Hughs Aircraft
Hughs Aircraft Company and Hughs Aircraft Mississippi Inc. have agreed to pay $500,000 to settle claims asserted in a qui tam action filed by two of its former employees. The case concerned Advanced Capacity Mark 48 torpedoes, which are used by nearly all modern submarines and are the primary line of defense for submarine warfare. The allegations of the case were that the Hughs companies defrauded the government by not properly testing certain electronic components of the torpedoes as was required under their contract with the government.
As part of the settlement, the former employees who filed the qui tam case will receive $100,000 for having filed the case.
See U.S. Dept of Justice Press Release 6/12/97